http://goingconcern.com/rss/posts
enLife at Deloitte Involves Avoiding Hangrynesshttp://goingconcern.com/post/life-deloitte-involves-avoiding-hangryness
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/hangry.png" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>I don't know about you all, but it's nothing short of a miracle if I eat lunch between 12 pm and 1 pm. What's worse is that once 1 pm comes and goes, time accelerates to ludicrous speed and all of a sudden it's 4 o'clock and I haven't had a single bite of sustenance since breakfast. Not good.</p>
<p>Once again, LaD sets the example: </p>
<blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>Breaking for food and <a href="https://twitter.com/hashtag/reflection?src=hash">#reflection</a>. Creating space to sit quietly is so important to my <a href="https://twitter.com/hashtag/wellbeing?src=hash">#wellbeing</a> and ability to be at my best each day.</p>
<p>— Life at Deloitte (@lifeatdeloitte) <a href="https://twitter.com/lifeatdeloitte/status/572831024675233792">March 3, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>Food. It makes you better.</p>
</div></div></div>Tue, 03 Mar 2015 20:20:25 +0000Caleb Newquist67808 at http://goingconcern.comhttp://goingconcern.com/post/life-deloitte-involves-avoiding-hangryness#comments#BusySeasonProblems: Bad Dreams, Late Night Housekeeping, More Bad Dreamshttp://goingconcern.com/post/busyseasonproblems-bad-dreams-late-night-housekeeping-more-bad-dreams
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/dreaming%20of%20excel.jpg" width="550" height="364" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Did you know there were 5 Tuesdays this month? Maybe I shouldn't mention that? Yeah, I won't mention that again.</p>
<blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>You know it's busy season when you consider leaving your house at 6:20 to be leaving late <a href="https://twitter.com/hashtag/busyseasonproblems?src=hash">#busyseasonproblems</a> <a href="https://twitter.com/hashtag/auditor?src=hash">#auditor</a></p>
<p>— Jay Lo (@jaylormann) <a href="https://twitter.com/jaylormann/status/570921389625991168">February 26, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>When you start dreaming about tax returns <a href="https://twitter.com/hashtag/BusySeasonProblems?src=hash">#BusySeasonProblems</a></p>
<p>— Rachael Harten (@rachael_harten) <a href="https://twitter.com/rachael_harten/status/571280894239088641">February 27, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>Putting up your groceries and cleaning your apt late night is frowned upon in my apt complex. <a href="https://twitter.com/hashtag/BusySeasonProblems?src=hash">#BusySeasonProblems</a> <a href="http://t.co/uN90YSgvZM">pic.twitter.com/uN90YSgvZM</a></p>
<p>— Jake Jones (@CPA_jjones) <a href="https://twitter.com/CPA_jjones/status/571457752452751360">February 27, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>10 days for the end... <a href="https://twitter.com/hashtag/BusySeasonProblems?src=hash">#BusySeasonProblems</a> <a href="https://twitter.com/hashtag/deadline?src=hash">#deadline</a></p>
<p>— Josué Rivera (@JosueERivera) <a href="https://twitter.com/JosueERivera/status/572577435515944960">March 3, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>When you're still in the office at 11:35... <a href="https://twitter.com/hashtag/busyseasonproblems?src=hash">#busyseasonproblems</a> <a href="http://t.co/dWCeFfl5eW">pic.twitter.com/dWCeFfl5eW</a></p>
<p>— gia (@giovannacarmela) <a href="https://twitter.com/giovannacarmela/status/572616255733166082">March 3, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>Spent the entire night yelling in my sleep about tying out financials <a href="https://twitter.com/hashtag/busyseasonproblems?src=hash">#busyseasonproblems</a></p>
<p>— Molly Ackerman (@molly_ackerman1) <a href="https://twitter.com/molly_ackerman1/status/572763952293261312">March 3, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script></div></div></div>Tue, 03 Mar 2015 16:42:25 +0000Caleb Newquist67806 at http://goingconcern.comhttp://goingconcern.com/post/busyseasonproblems-bad-dreams-late-night-housekeeping-more-bad-dreams#commentsAccounting News Roundup: British American Tobacco Stubs Out PwC; Genworth's Material Weakness; Unreported Fraud | 03.03.15http://goingconcern.com/post/accounting-news-roundup-british-american-tobacco-stubs-out-pwc-genworths-material-weakness
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/rabbit.png" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>BAT sues PwC over historic pollution liabilities in the US</strong> [<a href="http://www.ft.com/intl/cms/s/0/e91b5ddc-c0f1-11e4-9949-00144feab7de.html" target="_blank">FT</a>]<br />British American Tobacco let PwC go as its auditor due to its ongoing dispute with Windward Prospects, another PwC audit client. BAT's continued litigation finally snagged PwC as it involves the audits of Windward's 2008 and 2009 financial statements. PwC plans to "vigorously defend" themselves, naturally.</p>
<p><strong>Britain’s Elite Still Enjoying a Tax Break 100 Years Old</strong> [<a href="http://www.nytimes.com/2015/03/03/business/dealbook/a-century-old-tax-break-for-the-rich-and-mobile-in-britain.html?_r=0" target="_blank">NYT</a>] <br />All anyone seeking to become a "non-domiciled" Briton needs to prove is that Dad was born outside the country and that they plan to move back to that place before they die. </p>
<p><strong>Genworth spots "material weakness" in controls over accounting</strong> [<a href="http://www.reuters.com/article/2015/03/02/genworth-finl-accounting-idUSL4N0W45EO20150302" target="_blank">Reuters</a>]<br />The MW led to the company missing a $44 million after-tax calculation error. </p>
<p><strong>Most Internal Fraud Still Swept Under the Rug</strong> [<a href="http://ww2.cfo.com/fraud/2015/03/internal-fraud-still-swept-rug/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A%20cfo%2Fdaily_briefing%20%28Latest%20Articles%20from%20CFO.com%29" target="_blank">CFO</a>]<br />No one wants the bad publicity.</p>
<p><strong>DEA warns of stoned rabbits if Utah passes medical marijuana</strong> [<a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2015/03/02/dea-warns-of-stoned-rabbits-if-utah-passes-medical-marijuana/" target="_blank">WaPo</a>]<br />So says Special Agent Matt Fairbanks who is part of Utah's "marijuana eradication" team.</p>
<p><strong>You can get free pancakes at IHOP today</strong> [<a href="http://www.usatoday.com/story/money/2015/03/03/free-pancakes-ihop-national-pancake-day/24302807/?utm_source=feedblitz&amp;utm_medium=FeedBlitzRss&amp;utm_campaign=usatoday-newstopstories" target="_blank">USAT</a>]<br />Apparently NPD is a BFD.</p>
</div></div></div>Tue, 03 Mar 2015 14:12:39 +0000Caleb Newquist67796 at http://goingconcern.comhttp://goingconcern.com/post/accounting-news-roundup-british-american-tobacco-stubs-out-pwc-genworths-material-weakness#commentsStarting a CPA Pot Practice Is Your Next Opportunityhttp://goingconcern.com/post/starting-cpa-pot-practice-your-next-opportunity
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/pot%20business%20card.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><div>Last month we discussed timing as it relates to <a href="http://goingconcern.com/post/when-right-time-start-your-own-accounting-firm" target="_blank">starting an accounting practice</a>. And while the timing is important, arguably, the most important decision you will make with regards to starting an accounting firm is the positioning, or niche, of your firm. </div>
<div> </div>
<div>Niches can be structured in a number of ways but most commonly, it’s around a service type or an industry. As you might have guessed from the headline, we’re going to focus on an industry, one that’s getting a lot of attention lately.</div>
<div> </div>
<div>Marijuana can now be legally purchased for recreational purposes in four states -- Alaska, Colorado, Oregon and Washington -- and the District of Columbia. As a resident of Colorado, I have witnessed legal marijuana light up all kinds of business opportunities here and I imagine the same is true for Washington. Alaska, Oregon and DC are all new to this but it won't be long before Pot, Inc. is thriving in those places too. </div>
<div> </div>
<div>We wrote about the opportunity for <a href="http://goingconcern.com/post/cpa-firms-going-pot-there-opportunity-retail-marijuana-industry" target="_blank">CPAs serving the marijuana industry</a> around this time last year. There still seems to be plenty of business to be had, but maybe not for long, for CPAs willing to take a risk and pursue a new industry.</div>
<div> </div>
<div>The AICPA is hosting a 90-minute webcast this Thursday called “<a href="http://www.cpa2biz.com/AST/Main/CPA2BIZ_Primary/Ethics/PRDOVR~PC-WBC14305G/PC-WBC14305G.jsp" target="_blank">Understanding the Impact of Legalized Marijuana on the CPA Profession</a>.” It’s going to cover a lot of areas including:</div>
<ul>
<li>The history of state and federal marijuana policy, legal and regulatory issues, and questions CPAs should ask themselves before deciding to offer services to marijuana-related businesses</li>
<li>Ethical considerations</li>
<li>Professional liability considerations</li>
<li>Tax compliance and other tax-related considerations</li>
<li>Audit and attest considerations</li>
</ul>
<div>Incredibly, the AICPA seems to recognize the glimmer of opportunity here. However, I’d venture to say that most established CPA firms see the marijuana industry as a gamble which is why a new generation of firms will have to pick up the slack as the industry gains more momentum through more sophisticated business practices and wider legalization.</div>
<div> </div>
<div>Has anyone looked into this yet? Anyone think that the industry will go up in smoke until the <a href="http://www.washingtonpost.com/news/morning-mix/wp/2014/11/05/how-the-irs-and-congress-cripple-the-marijuana-industry-with-an-obscure-decades-old-law/" target="_blank">tax law</a> gets fixed? Hash it out in the comments.</div>
</div></div></div>Mon, 02 Mar 2015 22:03:18 +0000Caleb Newquist67794 at http://goingconcern.comhttp://goingconcern.com/post/starting-cpa-pot-practice-your-next-opportunity#commentsAmerican Realty Capital: Nothing to See Here Except Some Weak Internal Controlshttp://goingconcern.com/post/american-realty-capital-nothing-see-here-except-some-weak-internal-controls
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/Naked%20Gun.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><a href="http://www.wsj.com/articles/arcp-restates-results-after-accounting-issues-1425299002" target="_blank" rel="nofollow">American Realty Capital Properites reported the results</a> of its internal investigation into accounting irregularities and SURPRISE, it's just some weak controls. </p>
<p>Interim ARCP CEO William Stanley is quoted, "Importantly, the investigation did not identify any material changes relating to our real estate ownership, the validity of our leases or our fundamental business operations."</p>
<p>So we're good then, right? I mean when have you <a href="http://articles.chicagotribune.com/2012-03-30/business/chi-groupon-revises-4q-earnings-down-20120330_1_refund-policy-lower-revenue-filing" target="_blank" rel="nofollow">ever heard of a company</a> <a href="http://dealbook.nytimes.com/2010/08/20/a-red-flag-on-g-m-internal-controls/" target="_blank" rel="nofollow">having weak controls</a> that were <a href="http://goingconcern.com/2011/3/wfts-material-weaknesses-led-to-giant-tax-wtf" target="_blank" rel="nofollow">indicative of a larger problem</a>?</p>
<p>[<a href="http://www.wsj.com/articles/arcp-restates-results-after-accounting-issues-1425299002" target="_blank" rel="nofollow">WSJ</a>] </p>
</div></div></div>Mon, 02 Mar 2015 19:27:39 +0000Caleb Newquist67792 at http://goingconcern.comhttp://goingconcern.com/post/american-realty-capital-nothing-see-here-except-some-weak-internal-controls#commentsHere Are Some Coded Phrases You Will Hear During Busy Seasonhttp://goingconcern.com/post/here-are-some-coded-phrases-you-will-hear-during-busy-season
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/indirect%20communication.png" width="420" height="294" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><div>It’s busy season and most accountants are feeling the physical and emotional pain of long hours. While cryptic underhanded messages are the last thing you need, there’s no stopping anyone from sending mixed messages.</div>
<div> </div>
<div>I’ve been there and it takes time to fully understand what people are saying to you. For all you newbies, here’s a list of for what your seniors and managers are <em>actually</em> saying to you:</div>
<div> </div>
<div>
<div><strong>“Did you bring your lunch?”</strong></div>
<div>Translation: “You don't actually get a break for lunch. Order ahead of time and pick it up to-go. Or get it delivered. And plan on eating your lunch at your desk while working.”</div>
<div> </div>
<div><strong>“Man, I have tons of work to do”</strong></div>
<div>Translation: “I am miserable. I have multiple managers who expected their audits to be done yesterday. This job isn't worth it. I’m looking for a pity party plus, I am searching for a way out of public accounting. Don’t mess with me today.” </div>
<div> </div>
<div><strong>“Just rollforward the file”</strong></div>
<div>Translation: “Change FYE 12/31/13 to 12/31/14 and sign off on the workpaper. You're done. That being said, I’ll probably still ask why you rolled it forward if it’s wrong.” </div>
<div> </div>
<div><strong>“We need to stay on budget”</strong></div>
<div>Translation: “Take the actual hours you worked that week, minus 10-15 hours and book that amount of time to the job code. It's called eating hours.”</div>
<div> </div>
<div><strong>“The client hasn't gotten us anything”</strong></div>
<div>Translation: “I can finally blame the client for not getting any work done today.”</div>
<div> </div>
<div><strong>“Do you have work to do this weekend?”</strong></div>
<div>Translation: “Yes, you have to work this weekend. Time to cancel any plans you had for anything you might enjoy doing.”</div>
<div> </div>
<div><strong>“Where are we at in the file?”</strong></div>
<div>Translation: “Tell me that you have accomplished something meaningful. Make me feel like things are going great for once.”</div>
<div> </div>
<div><strong>“Auditing is a great financial career decision”</strong></div>
<div>Translation: “Just look at your salary basis and be happy with that annual number. Do NOT calculate your hourly rate. It will depress you, I promise.”</div>
<div> </div>
<div><strong>“I left a few comments for you in the file”</strong></div>
<div>Translation: “I ripped apart all of your work and found errors everywhere. I left a note for each error and good luck understanding what I meant for each comment. Also, this is additional work on top of your day-to-day tasks. Plan to work tonight. Oh, and yes, I may have told you to change font size and color. Just do it.”</div>
<div> </div>
<div><strong>“It should take you about 30 minutes to complete”</strong></div>
<div>Translation: “It will actually take you about 4 hours to complete however I expect you to book 30 minutes.”</div>
<div> </div>
<div>Consider yourself properly warned. What coded phrases are you hearing?</div>
</div>
<p> </p>
</div></div></div>Mon, 02 Mar 2015 17:26:46 +0000Andrew Argue67790 at http://goingconcern.comhttp://goingconcern.com/post/here-are-some-coded-phrases-you-will-hear-during-busy-season#commentsFriendly Reminder: Stop Talking About CPA Exam Specifics on the Internethttp://goingconcern.com/post/friendly-reminder-stop-talking-about-cpa-exam-specifics-internet
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/stoptalking.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>So, imagine my joy and pleasure when I received the following email from the AICPA this morning:</p>
<blockquote><p>Dear Ms. Gonzalez,</p>
<p>In order to ensure that exam content is kept secure and to maintain the integrity of the CPA Exam, we regularly take a look at what candidates are saying on social media and in web forums.</p>
<p>It has come to our attention that a post on your website mentions specific TBS tasks in the FAR section of the exam. We are requesting that you remove this post immediately and monitor your site in the future for other posts that may divulge exam content. I have copied [redacted], the AICPA Examinations Team Security Officer, on this email.</p>
<p>At the time of their exam, candidates agree to a statement of confidentiality. They agree not to divulge the nature or content of any exam question or answer and should be aware that they must maintain the confidentiality of the exam once they leave the testing center.</p>
</blockquote>
<p>The AICPA went on to link to the thread in question as well as send along a screenshot in case I missed the comments that said specifically what simulations the commenters got. FRIENDLY REMINDER: STOP POSTING THAT SHIT.</p>
<p>As the AICPA mentions, you all agree that you won't do that. Whether it's on the Internet (come on, chuckleheads, this is a public site) or to your cube neighbor who is taking FAR next week. This is <a href="http://www.aicpa.org/becomeacpa/cpaexam/forcandidates/faq/downloadabledocuments/confidentialitystatement.pdf" target="_blank">what you agree not to do when you take the exam</a>:</p>
<blockquote><p>Divulge the nature or content of any Uniform CPA Examination question or answer under any circumstances</p>
</blockquote>
<p>If you choose to treat this like the many user licenses you've agreed to over the years (what does all that Apple crap say about using your iPad for terrorist activity anyway?), the consequences can be far more severe than simply having your comments deleted:</p>
<blockquote><p>I understand that failure to comply with this Policy Statement and Agreement may result in the invalidation of my grades, disqualification from future examinations, expulsion from the testing facility, and possible civil or criminal penalties.</p>
</blockquote>
<p>I ended up removing not one, nor two, but three comments that blabbed what sims you received. What on Earth would compel any of you to put this information on a public forum?</p>
<p>Luckily, <a href="http://goingconcern.com/going-concern-community-guidelines" target="_blank">we take your personal information seriously</a> and -- barring a legal order from a judge -- wouldn't reveal your identity to the AICPA or anyone else who may not like what you posted. All they asked was for the comments to be removed, which I did, but please consider this for the future.</p>
<p>We don't need this heat from the AICPA just because you people can't keep your mouths shut. So to reiterate: ZIP IT.</p>
</div></div></div>Mon, 02 Mar 2015 16:37:05 +0000Adrienne Gonzalez67791 at http://goingconcern.comhttp://goingconcern.com/post/friendly-reminder-stop-talking-about-cpa-exam-specifics-internet#commentsAccounting News Roundup: NoMo BoMo Selfies; A Critical Talent Shortage; KPMG's New Audit Chief | 03.02.15http://goingconcern.com/post/accounting-news-roundup-nomo-bomo-selfies-critical-talent-shortage-kpmgs-new-audit-chief-030215
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/strung%20out.jpg" width="600" height="337" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>BAT lights up audit contract competition</strong> [<a href="http://www.ft.com/fastft/285202/bat-lights-up-audit-contract-competition" target="_blank">Fast FT</a>]<br />British American Tobacco, the world's second largest tobacco company, is on the hunt for a new audit firm to replace PwC, its auditors since 1998. In a rather mysterious statement to the London Stock Exchange, BAT said PwC will not seek re-appointment as the company's auditors at this year's annual general meeting. This is a result of proposed legal action by a subsidiary of the tobacco giant against the audit firm.</p>
<p><strong>Come on, guys, let BoMo in on the selfie</strong> [Twitter]</p>
<blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>Great discussion with students of <a href="https://twitter.com/PittTweet">@PittTweet</a> today! <a href="https://twitter.com/hashtag/PwCAspire?src=hash">#PwCAspire</a> <a href="http://t.co/sS8hKwQG4E">pic.twitter.com/sS8hKwQG4E</a></p>
<p>— Bob Moritz (@Bob_Moritz) <a href="https://twitter.com/Bob_Moritz/status/571409455734263808">February 27, 2015</a></p></blockquote>
<p><strong>8 things millennials want—and don’t want—show how different they are from their parents</strong> [<a href="http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/28/8-things-millennials-want-and-dont-want-basically-anything-their-parents-wanted/" target="_blank">Washington Post</a>]<br />Spoiler alert: they don't care about cars, TVs, or houses. We'd still like that pony, though.</p>
<p><strong>O'Mara appointed as new KPMG global audit chief</strong> [<a href="http://www.accountancyage.com/aa/news/2397526/omara-appointed-as-new-kpmg-global-audit-chief" target="_blank">Accountancy Age</a>]<br />To quote the new guy: "As auditors, we are committed to help address these issues by offering assurance over what matters to stakeholders and with innovative cutting-edge audit processes and tools, such as utilizing data and analytics to drive audit quality and surface actionable insights from audit evidence."</p>
<p><strong>Data breaches fuel new era of tax fraud</strong> [<a href="http://thehill.com/policy/cybersecurity/234190-data-breaches-fuel-new-era-of-tax-fraud" target="_blank">The Hill</a>]<br />The rash of massive data breaches across the United States is driving a new era of electronic tax fraud that has caught Congress’s attention and left consumers wondering if their tax information is safe. “You’re seeing the dawn of this new era,” said Jim Penrose, a former head of the National Security Agency’s Operational Discovery Center and now an executive vice president at cybersecurity firm DarkTrace. “A concerted effort on the part of cyber criminals to gather the personally identifiable information [PII] of taxpayers.”</p>
<p><strong>Entrepreneurs' views on recommending accountants</strong> [<a href="http://www.accountingweb.co.uk/article/entrepreneurs-views-recommending-accountants/572876" target="_blank">AccountingWEB UK</a>]<br />The shade of it all: "I was concerned to hear that one client especially liked their accountant because he seems to know the answer to everything, never needs to check and never needs to research anything. He knows it all. Of course I can understand why this might appear superficially attractive. But I do hope the accountant in question recognises what he doesn’t know and has just got lucky so far, in that the client has only asked simple stuff."</p>
<p><strong>Talent shortage hurting accountancy profession</strong> [<a href="http://economia.icaew.com/news/march-2015/talent-shortage-hurting-accountancy-profession" target="_blank">economia</a>]<br />Sound familiar? " More than 70% of accountancy employers say they are affected by a skills shortage, according to research from professional recruiters Robert Walters While 56% of recruiters say they have struggled to recruit for some roles, 32% say the quality of candidates is lacking. The research also revealed that as a result staff moral is suffering with 43% of businesses struggling to meet deadlines and client expectations because of shortages. Nearly a quarter (24%) of employers reported that morale has reduced as unfilled vacancies have heap pressure on existing staff."</p>
<p><strong>American Arrested for Smuggling After Her Mom Mailed an Adderall Refill</strong> [<a href="http://gawker.com/american-woman-with-a-d-d-locked-up-in-japan-over-adde-1688846360" target="_blank">Gawker</a>]<br />In Japan.</p>
</div></div></div>Mon, 02 Mar 2015 14:02:42 +0000Adrienne Gonzalez67789 at http://goingconcern.comhttp://goingconcern.com/post/accounting-news-roundup-nomo-bomo-selfies-critical-talent-shortage-kpmgs-new-audit-chief-030215#commentsFriday Footnotes: SEC and China; Small Company Audit Fees; Don't Use TurboTax | 02.27.15http://goingconcern.com/post/friday-footnotes-sec-and-china-small-company-audit-fees-dont-use-turbotax-022715
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/audited-in-china_24.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>Leonard Nimoy, Spock of ‘Star Trek,’ Dies at 83 </strong>[<a href="http://www.nytimes.com/2015/02/27/arts/television/leonard-nimoy-spock-of-star-trek-dies-at-83.html?_r=0" target="_blank">NYT</a>]</p>
<p><strong>Robert Benmosche, Former AIG CEO, Dies at Age 70</strong> [<a href="http://www.bloomberg.com/news/articles/2015-02-27/robert-benmosche-who-led-aig-in-repaying-bailout-dies-at-70" target="_blank">Bloomberg</a>]</p>
<p><strong>The SEC Caves on China</strong> [<a href="http://www.wsj.com/articles/the-sec-caves-on-china-1424967173" target="_blank">WSJ</a>]</p>
<p><strong>Small Firms Pay Bigger Slice of Revenue in Audit Fees</strong> [<a href="http://ww2.cfo.com/auditing/2015/02/small-firms-pay-bigger-slice-revenue-audit-fees/?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A%20cfo%2Fdaily_briefing%20%28Latest%20Articles%20from%20CFO.com%29" target="_blank">CFO</a>]</p>
<p><strong>Bank of America accounting chief, two directors to step down</strong> [<a href="http://www.reuters.com/article/2015/02/26/us-bankofamerica-managementchanges-idUSKBN0LU2IP20150226" target="_blank">Reuters</a>]</p>
<p><strong>Bank of England turns up the heat on accounting firms</strong> [<a href="http://www.reuters.com/article/2015/02/27/boe-accounts-regulator-idUSL5N0W13WK20150227" target="_blank">Reuters</a>]</p>
<p><strong>Who's working this weekend?</strong></p>
<blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Calm before the storm. A flood of 10Ks are about to be unleashed. Deadline is Monday. Who will be last 10K today?</p>
<p>— footnoted (@footnoted) <a href="https://twitter.com/footnoted/status/571411901969793024">February 27, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p><span id="cke_bm_340S" style="display: none;"> </span><b>De Niro Socked With $6.4 Million IRS Tax Lien</b><span id="cke_bm_340E" style="display: none;"> </span> <em>De Niro spokesperson Stan Rosenfeld said that IRS delinquency notices had been “sent to an old address,” and that once the actor learned of the seven-figure tax lien, “he had a check for the full amount hand delivered to the IRS this morning.”</em> [<a href="http://www.thesmokinggun.com/documents/celebrity/robert-deniro-irs-tax-lien-897432" target="_blank">TSG</a>]</p>
<p><strong>Bartender beats barrister in Tax Court</strong> [<a href="http://rothcpa.com/2015/02/tax-roundup-22715-bartender-beats-barrister-in-tax-court-and-more/" target="_blank">Tax Update</a>]</p>
<p><strong>Do Not Use TurboTax This Tax Season</strong> [<a href="http://newsfeed.gawker.com/do-not-use-turbotax-this-tax-season-1688222595" target="_blank">Gawker</a>]</p>
</div></div></div>Fri, 27 Feb 2015 23:11:26 +0000Caleb Newquist67785 at http://goingconcern.comhttp://goingconcern.com/post/friday-footnotes-sec-and-china-small-company-audit-fees-dont-use-turbotax-022715#commentsFlorida Man Drives Porsche on Sidewalk to Make a Point, Gets Arrestedhttp://goingconcern.com/post/florida-man-drives-porsche-sidewalk-make-point-gets-arrested
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/florida_1.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>We love a good Florida Man story around here. And today, that man just happens to work at PwC. Exciting!</p>
<p>David Clarke became a principal at the firm when <a href="http://www.pwc.com/us/en/press-releases/2013/pwc-completes-asset-acquisition.jhtml" target="_blank">PwC acquired</a> his digital consultancy BGT in 2013. <span style="font-size: 13.0080003738403px; line-height: 1.538em;">So, obviously, he didn't come up in the firm because if there's one thing these firms drill into you, it's that you </span><a href="http://www.bizjournals.com/southflorida/news/2015/02/27/pwc-principal-clarke-and-wife-arrested-sidewalk.html?page=all" style="font-size: 13.0080003738403px; line-height: 1.538em;" target="_blank">don't call attention to yourself</a><span style="font-size: 13.0080003738403px; line-height: 1.538em;"> like this:</span></p>
<blockquote><div>PwC US Principal David L. Clarke, formerly a Principal of BGT Partners, and his wife, Dara S. Clarke, were arrested Thursday night for allegedly damaging a sidewalk that the developer of the Prive at Island Estate condominium project were building across their lawn.</div>
</blockquote>
<div>Fun fact: David Clarke was also EY Entrepreneur of the Year finalist. Sorry, just wanted to mention that:</div>
<blockquote><div>The Clarkes were among a group of homeowners who filed a lawsuit seeking to halt construction of the sidewalk that would traverse their properties on an island in Aventura. The sidewalk is required to be completed for the developer to build its 160-unit project. On Wednesday, the developer won an appeals court ruling that tossed out the injunction preventing construction of the sidewalk.</p>
<p>Sidewalk construction began Thursday. The Clarkes allegedly damaged the wet cement by driving over it with their vehicles.</div>
<div>They were both charged with felony criminal mischief. Dara Clarke was also charged with disorderly conduct and resisting arrest without violence.</div>
<div> </div>
<div>David Clarke said he shouldn't be charged with damaging the developer's sidewalk because it didn't belong on his property in the first place. He expects to prevail in court.</div>
</blockquote>
<p>Wait a minute. Haven't rednecks in Florida been driving on their own property since Ponce de Leon ran aground in St. Augustine? Kinda seems like NBD. </p>
<p>Let's read on: </p>
<blockquote><div>According to the incident report by Aventura police, on Thursday night, construction foreman Charles Phelan told officers that he saw a blue Porsche SUV with David Clarke, 43, in the driver's seat and Dara Clarke, 40, in the passenger seat, going back and forth over a long, wet cement curb that his crew had laid earlier in the evening. The couple was allegedly laughing as they damaged the curve in front of their home at 3901 Island Estate Drive. Phelan claimed that they caused $3,000 worth of damage.</p>
<p>Phelan said Dara Clarke had previously laid her body and parked her vehicles in the direct path of his sidewalk construction crew. The developer previously shared a video of her protesting their work.</p>
<p>The police found several sets of tire treads on the damaged curb. They also found wet cement on the tires of the couple's BMW.</p>
<p>David Clarke wasn't on the scene when officers first arrived. When the officers began speaking to Dara Clarke, she allegedly became "extremely irate" and began yelling at officers and Phelan. The two officers said she rushed toward them and attempted to push a phone in their faces while screaming, "look at the property line." After the officers told her she was under arrest, Dara Clarke allegedly began to pull away and "fight" officers while saying, "police brutality."</div>
</blockquote>
<div>When you pit a real estate developer against an entitled couple using their luxury cars as destructive agents, it's really hard to pick a side. Reason it out in the comments.</div>
<div> </div>
<div><a href="http://www.bizjournals.com/southflorida/news/2015/02/27/pwc-principal-clarke-and-wife-arrested-sidewalk.html?page=all" target="_blank">PwC principal Clarke and wife arrested amid dispute with condo developer</a> [SFBJ]</div>
</div></div></div>Fri, 27 Feb 2015 20:14:13 +0000Caleb Newquist67784 at http://goingconcern.comhttp://goingconcern.com/post/florida-man-drives-porsche-sidewalk-make-point-gets-arrested#commentsEY Still Bleeding Audit Clientshttp://goingconcern.com/post/ey-still-bleeding-audit-clients
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/Honey%20Badger_1.jpeg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>As mentioned this morning, BDO did pretty well last year, winning net 40 new SEC audit clients in 2014. The firm actually won a total of 54 new engagements, slightly more than 1 new client a week. That's pretty good!</p>
<p>Now for bad. Really, really, really bad. Here's the table from <em>Accounting Today</em>, that compiled data provided by the stellar team at Audit Analytics:</p>
<p><img alt="" src="/sites/default/files/Total2014-GainsLosses.jpg" style="width: 560px; height: 191px; float: left;" />Sorry, <a href="http://cdn.accountingtoday.com/media/newspics/Total2014-GainsLosses.jpg" target="_blank">go here</a> if you can't stand squinting.</p>
<p>EY lost 65 SEC audits last year, net loss of 43. That seems like a lot! I mean, when we <a href="http://goingconcern.com/post/ernst-young-lost-lot-audit-clients-last-quarter" target="_blank">reported back in Q2 of 2013 that the firm was losing</a> more than one client a week, that seemed like a lot, too!</p>
<p>This is quite a bit worse than last year when the <a href="http://cdn.accountingtoday.com/media/newspics/2013TotalClientGains.jpg" target="_blank">firm dropped</a> a net 28 clients last year. </p>
<p>What's the dealio? Well, you may remember that the firm <a href="http://goingconcern.com/post/new-ey-50-billion-revenue-goal-squishy-independence-and-adios-ampersand" target="_blank">launched their 2020 initiative</a> a couple years back that included a revenue target of $50 billion. While <a href="http://www.ey.com/GL/en/Newsroom/News-releases/News-EY-reports-2014-global-revenues-of-27-4-billion-dollars#.VPClovnF-So" target="_blank">the firm had a nice 2014</a>, with revenues above $27 billion, there's quite a bit of work to be done if they're to reach the $50bil mark.</p>
<p>Advisory (aka consulting) and transaction services (aka consulting) were two biggest growth areas for the firm and, unless something dramatic happens, they'll be the two biggest growth areas in 2015 as well. As these service areas grow, some conflicts are bound to come up with some of the firm's audit clients. And you'd have to be a damn fool to think that EY would rather keep an audit engagement over new consulting work. Not to say that's the primary driver of the 2014 audit client losses, but in each case, EY already has a touch point with those companies. Once that the burden of independence is gone, the firm can start proposing all kinds of fancy services without any hindrance of conflict.</p>
<p>Just like <a href="http://goingconcern.com/post/pwc-and-deloitte-probably-dont-care-they-lost-so-many-audit-clients" target="_blank">PwC and Deloitte</a> (who also lost a fair number of audit clients), EY is officially going all honey badger on assurance services. And why not? They've got a big goal they want to reach. They'll keep the shiniest audit clients and ship off the rest to, from the looks of it, BDO, GT and KPMG. </p>
</div></div></div>Fri, 27 Feb 2015 18:12:58 +0000Caleb Newquist67782 at http://goingconcern.comhttp://goingconcern.com/post/ey-still-bleeding-audit-clients#commentsAccounting News Roundup: BDO Big Audit Winner in 2014; Big 4 Business Model Post-Overtime Settlement; Telling Employees to Stay Home | 02.27.15http://goingconcern.com/post/accounting-news-roundup-bdo-big-audit-winner-2014-big-4-business-model-post-overtime-settlement
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/WayneBerson_4.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>BDO Sweeps 2014 Audit Clients</strong> [<a href="http://www.accountingtoday.com/news/auditing/bdo-sweeps-2014-audit-clients-73763-1.html?utm_campaign=daily-feb%2027%202015&amp;utm_medium=email&amp;utm_source=newsletter&amp;ET=webcpa%3Ae3913495%3A2471609a%3A&amp;st=email" target="_blank">AT</a>]<br />Two years in a row Bravo Delta Oscar has snagged the most new SEC audit clients. They increased by net 40, with 54 total new engagements. Here's Wayne Berson: "Organically, we added 39, and by expansions we added 15. So even if you back out the expansion-related additions, we would have comfortably maintained our position."</p>
<p><strong>PwC’s California Overtime Case Settles But The Big Four Business Model Will Change Anyway</strong> [<a href="https://medium.com/bull-market/pwc-s-california-overtime-case-settles-but-the-big-four-business-model-will-change-anyway-8598ce74c1da" target="_blank">Medium/Francine McKenna</a>]<br />DID YOU KNOW: Both Bob Moritz and Dennis Nally were on the witness list. Plus, there's this: "The largest public accounting firms like the 150-hour rule because a Masters degree program may meet the requirement of the legal decision points for exempt vs. non-exempt in overtime litigation against the firms. (Per my sources, the Big Four firms have begun to insist on Masters degrees as a condition of recruiting at more and more university accounting programs.) That’s because if, for example a job requires an extended course of specialized study like law or medicine, it may be considered a “learned” profession, and often automatically considered exempt from overtime."</p>
<p><strong>U.S.’s New Fraud Chief Will Enforce Laws He Was Paid to Blunt</strong> [<a href="http://www.bloomberg.com/news/articles/2015-02-27/u-s-s-new-fraud-chief-will-enforce-laws-he-was-paid-to-blunt" target="_blank">Bloomberg</a>]<br />Andrew Weissman is the DOJ's new man in charge of corporate prosecutions. Mr. Weissman led the task force that investigated Enron, the U.S. Chamber of Commerce was his client while he worked at Jenner &amp; Block and he's spent the last few years as General Counsel at the FBI. </p>
<p><strong>Gilead Avoids Billions in U.S. Tax on Its $1,000-a-Pill Drug</strong> [<a href="http://www.bloomberg.com/news/articles/2015-02-26/gilead-avoids-billions-in-u-s-taxes-on-its-1-000-a-pill-drug" target="_blank">Bloomberg</a>]<br />The intellectual property for its Hep-C treatement, Sovaldi, is located in...wait for it...Ireland.</p>
<p><strong>Deloitte's tech hiring in Orlando rapidly nears 500</strong> [<a href="http://www.orlandosentinel.com/business/brinkmann-on-business/os-deloittes-tech-hiring-in-orlando-rapidly-nears-500-20150226-post.html" target="_blank">OS</a>]<br />That's halfway towards their goal of 1,000 for the new IT center located in Heathrow.</p>
<p><strong>When to Tell Your Employees to Stay Home</strong> [<a href="https://hbr.org/2015/02/when-to-tell-your-employees-to-stay-home" target="_blank">HBR</a>]<br />It's not always an easy answer.</p>
<p><strong>What color is <a href="https://gs1.wac.edgecastcdn.net/8019B6/data.tumblr.com/a391a1b4b46dd6b498d379e50f96ecbc/tumblr_nkcjuq8Tdr1tnacy1o1_500.jpg" target="_blank">this dress?</a> </strong><br />Blue and black is the correct answer (although I think it's more of a gun metal grey).</p>
</div></div></div>Fri, 27 Feb 2015 14:35:02 +0000Caleb Newquist67780 at http://goingconcern.comhttp://goingconcern.com/post/accounting-news-roundup-bdo-big-audit-winner-2014-big-4-business-model-post-overtime-settlement#commentsMemo to CPA Exam Candidates: Don't Park in the Tow Away Zone at Prometrichttp://goingconcern.com/post/memo-cpa-exam-candidates-dont-park-tow-away-zone-prometric
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/violators.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Over the years, we've shared several CPA exam horror stories ranging from shameful idiocy to prison yard shanking level asshattery.</p>
<p>For example, there was the person <a href="http://goingconcern.com/post/cpa-exam-horror-stories-trapped-prometric-6-hours" target="_blank">trapped in Prometric for 6 hours</a> due to a system freeze. That's pretty bad but on a scale from 1 to 10 with 1 being the grey screen of death and 10 being a portal to hell opening up beneath Prometric and swallowing up the testing center, this is probably a 2. After all, the candidate could have walked out at any point.</p>
<p>Or how about the guy who got an email from NASBA informing him that his <a href="http://goingconcern.com/post/has-anyone-seen-cpa-exam-candidates-missing-far-scores" target="_blank">FAR scores were <strong>lost</strong></a>? It's not like the scores are hand-delivered in a briefcase like Oscar envelopes, how exactly do they lose scores? The good news is his scores were eventually recovered but still. Being told your scores have vanished into thin air is probably, what, a 5?</p>
<p>Let's not forget the young lady who was kicking ass so hard on the CPA exam, <a href="http://goingconcern.com/post/horror-stories-cpa-exam-prometric-nose-bleed" target="_blank">her nose started bleeding halfway through</a>. Unwilling to forfeit her exam by leaving the room, she finished up her simulations like a boss with blood dripping down her face. While that's a pretty terrible situation, it's less a horror story and something she will get to brag about for at least another few years. "Oh yeah, you think YOUR exam experience was hard? Let me tell you about what happened to me..."</p>
<p>Well, today comes a story that many of us can relate to.</p>
<p>Imagine going about your business, walking out to the parking lot, and realizing your car isn't there. Assuming you've been making your car payments on time, it's a safe bet you got towed. Your eyes may glance up and notice the conspicuously posted "NO PARKING" sign you missed when you happily took that "parking spot" and trotted off to do your errands. Or maybe you have been avoiding the parking authority for months knowing one of these days all those unpaid parking tickets will catch up with you. Whatever the reason, finding your car is not where you left it is a terrible feeling.</p>
<p>Now imagine you've just walked out of the CPA exam. You already feel terrible. You probably plan to go straight home and drink heavily. Guess what? Your car isn't there.</p>
<blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>i think the worse part of that 4 hour cpa exam was finding out that my car was towed as i was taking it...</p>
<p>— bebe (@itsBEBE__) <a href="https://twitter.com/itsBEBE__/status/571016470517448704">February 26, 2015</a></p></blockquote>
<p><script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>Yup, definitely the worst part of your exam experience.</p>
<p>Now, we're unsure on the details here but may we offer a suggestion for others who may want to avoid this situation? If this is your first exam or you haven't used this testing center before, do a dry run before your exam. Figure out the best way to get there and the safest place to park. If there is a paid lot, we humbly suggest you cough up a few bucks to safely stash your car there.</p>
<p>Do you have a CPA exam horror story of your own to share? <a href="http://mailto:tips@goingconcern.com" target="_blank">Get in touch</a>.</p>
</div></div></div>Thu, 26 Feb 2015 21:15:46 +0000Adrienne Gonzalez67778 at http://goingconcern.comhttp://goingconcern.com/post/memo-cpa-exam-candidates-dont-park-tow-away-zone-prometric#commentsActually, Everyone Knows That Having Two Monitors Is Super Bosshttp://goingconcern.com/post/actually-everyone-knows-having-two-monitors-super-boss
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/dualmonitors_1.jpeg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Today in this isn't news news.</p>
<blockquote class="twitter-tweet" lang="en" xml:lang="en"><p>You may not know it but having two screens is super boss</p>
<p>— Life at Deloitte AU (@AuDeloittian) <a href="https://twitter.com/AuDeloittian/status/570831707969949697">February 26, 2015</a></p></blockquote>
<script async="" src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p>This is Life at Deloitte Down Under, which may explain why he's under the assumption that we haven't <a href="http://goingconcern.com/post/debate-heats-over-how-many-computer-monitors-you-should-have" target="_blank">already beaten</a> <a href="http://goingconcern.com/post/science-says-you-should-have-multiple-large-monitors" target="_blank">this topic</a> <a href="http://goingconcern.com/post/dual-monitors-will-allow-pwc-auditors-finally-get-some-work-done" target="_blank">to death</a>.</p>
</div></div></div>Thu, 26 Feb 2015 17:50:30 +0000Caleb Newquist67777 at http://goingconcern.comhttp://goingconcern.com/post/actually-everyone-knows-having-two-monitors-super-boss#commentsThe Monthly Close: Another Accountant Who Didn't Get Laidhttp://goingconcern.com/post/monthly-close-another-accountant-who-didnt-get-laid
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/Screenshot%20%2859%29.png" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>The books on January are closed and it's time to review the best stories from last month with your favorite Utah chuckleheads. </p>
<p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/es9DWivSdFk" width="560"></iframe><p>If you need a refresher on the stories from January'smonthly close, here you go:</p>
<p><a href="http://goingconcern.com/post/jilted-girlfriend-has-totally-had-it-cheap-accountant-boyfriend-and-his-stupid-spreadsheet" target="_blank">Jilted Girlfriend Has Totally Had It With Cheap Accountant Boyfriend and His Stupid Spreadsheet</a></p>
<p><a href="http://goingconcern.com/post/stop-using-these-played-out-words-your-linkedin-profile-immediately" target="_blank">Stop Using These Played Out Words in Your LinkedIn Profile Immediately</a></p>
<p><a href="http://goingconcern.com/post/accounting-news-roundup-legal-marijuana-smoke-irs-dixon-hughes-goodman-opens-guy-who-isnt-dead" target="_blank">Guy Who Isn't Dead Tries to Pay Taxes</a></p>
<p><a href="http://goingconcern.com/post/aicpa-courting-beliebers-now" target="_blank">AICPA Courting Beliebers Now</a></p>
<p><a href="http://goingconcern.com/post/kpmg-concerned-employees-cant-resist-banging-one-another" target="_blank">KPMG Concerned Employees Can't Resist Banging One Another</a></p>
</div></div></div>Thu, 26 Feb 2015 17:07:13 +0000Caleb Newquist67776 at http://goingconcern.comhttp://goingconcern.com/post/monthly-close-another-accountant-who-didnt-get-laid#comments#TBT: Barry Melancon, The Most Hated Man in Accountinghttp://goingconcern.com/post/tbt-barry-melancon-most-hated-man-accounting
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/barry%20barry_8.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>2002 wasn't exactly a fantastic year for accounting. Arthur Andersen had just been convicted of obstruction of justice in the wake of Enron's collapse. That whole Sarbanes-Oxley thing happened. And, of course, the PCAOB was born as a result.</p>
<p>In "<a href="http://www.forbes.com/forbes/2002/1125/060a.html" target="_blank">The Man With Nine Lives</a>" published by <em>Forbes</em> in November of 2002 we meet then 44-year-old Barry Melancon, a troubled figure clinging to his position at the AICPA:</p>
<blockquote><p>For Barry Melancon, the 44-year-old chief executive of the accounting industry’s self-regulatory body, it’s been a terrible year. A wave of accounting scandals has damaged the AICPA’s image. On his watch, the AICPA has been accused of giving short shrift to the auditing rules it sets, which are supposed to protect investors. And under Melancon, the AICPA has set up a Web site that ignited a barrage of conflicts-of-interest charges against him.</p>
</blockquote>
<p>That "Web site" as we know was CPA2Biz, which has since been <a href="http://goingconcern.com/post/aicpa-has-nuked-cpa2biz-brand-favor-cpacom" target="_blank">rebranded to CPA.com</a>. A "dot com startup" in the age of Pets.com and Webvan, Barry's 1% stake in CPA2Biz -- which cost him $100,000 -- quickly grew to over $5 million.</p>
<p>Although the AICPA's governing council approved this state, certain folks in the profession thought it was a little weird or -- dare we say, <strong>wrong </strong>-- for the head of a non-profit trade group to profit on a for-profit Internet venture.</p>
<blockquote><p>Some 160 member accountants have signed a petition asking him to resign. BDO Seidman, the fifth-largest accounting firm, has sued the AICPA over the site, alleging Melancon is trying to enrich himself and that the AICPA is wrongfully competing with accounting firms. An AICPA member has filed an ethics violation accusing him of self-dealing. (None of the AICPA’s chiefs, including Melancon, has ever had a finding against them.) Now, Congress has yanked the AICPA’s auditing oversight duties away from it and given them to a new federal board. Some wonder how Melancon can hold on to his job.</p>
</blockquote>
<p>The CPA2Biz scandal forced Barry to donate his questionably-gotten gains to charity so as not to distract from <a href="http://www.nytimes.com/2002/03/30/business/enron-s-many-strands-accounting-audit-group-s-chief-donate-disputed-stock.html" target="_blank">the important PR work the profession had to do post-Enron</a>:</p>
<blockquote><p>''This was a distraction to communication,'' Mr. Melancon said. ''It just was causing us to not be focusing on the issues on Enron, the issues of change to be made.''</p>
</blockquote>
<p>Back to <em>Forbes</em>, the poor guy was getting it from all sides back then:</p>
<blockquote><p>“I think the AICPA under Melancon’s leadership has been the least effective, most backward, most obstructionist group that I encountered in my eight years running the SEC,” says Arthur Levitt, former Securities &amp; Exchange Commission chairman. Lynn Turner, former SEC chief accountant, agrees. “If Melancon were a CEO of a company, he’d be fired by now,” says Turner, who recently received a big round of applause in a speech before 700 accountants when he called for Melancon to step down.</p>
</blockquote>
<p>As we all know, the AICPA did not fire Melancon. 13 years later, he's bragging about how the AICPA has surpassed 400,000 members and more students than ever are graduating from accounting programs. As for CPA2Biz? Well it never did IPO.</p>
</div></div></div>Thu, 26 Feb 2015 16:11:12 +0000Adrienne Gonzalez67775 at http://goingconcern.comhttp://goingconcern.com/post/tbt-barry-melancon-most-hated-man-accounting#commentsAccounting News Roundup: Whistleblower Dissuasion; A History of Spreadsheets; Edible Coffee Cups | 02.26.15http://goingconcern.com/post/accounting-news-roundup-whistleblower-dissuasion-history-spreadsheets-edible-coffee-cups-022615
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/i-love-spreadsheets_4.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><strong>SEC Probes Companies’ Treatment of Whistleblowers</strong> [<a href="http://www.wsj.com/articles/sec-probes-companies-treatment-of-whistleblowers-1424916002" target="_blank">WSJ</a>]<br />The Commission is hearing all kinds of stories about whistleblower dissuasion and is asking for NDAs, employment contracts, etc.: "Some of these types of documents sometimes include clauses that impede employees from telling the government about wrongdoing at the company or other potential securities-law violations, according to lawyers who handle whistleblower cases and some members of Congress. In some cases, the firms require employees to agree to forgo any benefits from government probes, effectively removing the financial incentive for participating in the SEC program."</p>
<p><strong>KPMG names William O'Mara global head of audit</strong> [<a href="http://www.reuters.com/article/2015/02/26/kpmg-moves-william-omara-idUSL4N0W04HV20150226" target="_blank">Reuters</a>]<br />Succeeding Larry Bradley.</p>
<p><strong>Cathleen Koch joins E&amp;Y as Americas tax policy leader</strong> [<a href="http://www.reuters.com/article/2015/02/25/ernstyoung-moves-cathleenkoch-idUSL4N0VZ3SY20150225" target="_blank">Reuters</a>]<br />She left her position in Senator Harry Reid's (D-NV) office where she served as chief tax adviser on tax and economic policy.</p>
<p><strong>IRS Won’t Collect Additional Taxes From Filers Who Used Incorrect Forms</strong> [<a href="http://www.wsj.com/articles/many-tax-filers-must-pay-back-portion-of-credits-given-via-healthcare-gov-1424807911" target="_blank">WSJ</a>]<br />The Treasury is basically saying, "Oh forget it," to the 50,000 filers who used the incorrect 1095-A statements.</p>
<p><strong>Spreadsheets!</strong> [<a href="http://www.npr.org/blogs/money/2015/02/25/389027988/episode-606-spreadsheets?utm_source=twitter.com&amp;utm_medium=social&amp;utm_campaign=planetmoney&amp;utm_term=nprnews&amp;utm_content=20150225" target="_blank">NPR/Planet Money</a>]<br />A twenty-minute podcast on the "Reality by the numbers. What spreadsheets have done to us."</p>
<p><embed allowfullscreen="true" base="http://www.npr.org" height="386" src="http://www.npr.org/v2/?i=389027988&amp;m=389091714&amp;t=audio" type="application/x-shockwave-flash" width="400" wmode="opaque"></embed></p>
<p><strong>KFC Introduces Edible Cookie Coffee Cups in the UK</strong> [<a href="http://www.eater.com/2015/2/25/8106849/kfc-edible-coffee-cups-cookie-cups-buckets-fried-chicken" target="_blank">Eater</a>]<br />Cookies shaped as cups "wrapped in sugar paper and lined with a layer of glorious white chocolate." Incredible.</p>
</div></div></div>Thu, 26 Feb 2015 14:30:32 +0000Caleb Newquist67774 at http://goingconcern.comhttp://goingconcern.com/post/accounting-news-roundup-whistleblower-dissuasion-history-spreadsheets-edible-coffee-cups-022615#commentsSupreme Court Unhooks Fisherman From Conviction Under SOX Anti-Shredding Provisionhttp://goingconcern.com/post/supreme-court-unhooks-fisherman-conviction-under-sox-anti-shredding-provision
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/sox_gun_1.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p><img alt="" src="/sites/default/files/sox_gun.jpg" style="width: 175px; height: 175px; float: right;" />A commercial fisherman who was snagged with a federal crime under <a href="https://www.law.cornell.edu/uscode/text/18/1519" target="_blank">18 U. S. C. §1519</a> -- aka Sarbanes-Oxley's anti-shredding provision -- because he threw back some undersized red grouper <a href="http://www.supremecourt.gov/opinions/14pdf/13-7451_m64o.pdf" target="_blank">got his day at the Supreme Court</a> and won. Talk about a keeper.</p>
<p>Justice <a href="http://www.npr.org/blogs/thetwo-way/2015/02/25/389005176/supreme-court-sides-with-fisherman-in-case-of-the-missing-fish" target="_blank">Ruth Bader Ginsburg read her opinion</a> from the bench, stating "Fish one may fry, but may one falsify, or make a false entry in the sea-dwelling creatures?" </p>
<p>Right now, CFOs everywhere are angling for ways on how to do the latter. </p>
<p>[<a href="http://www.supremecourt.gov/opinions/14pdf/13-7451_m64o.pdf" target="_blank">Yates v. United States</a> via <a href="http://www.npr.org/blogs/thetwo-way/2015/02/25/389005176/supreme-court-sides-with-fisherman-in-case-of-the-missing-fish" target="_blank">NPR</a>, <a href="http://goingconcern.com/post/now-were-creatively-interpreting-sarbanes-oxley-include-fish" target="_blank">Earlier</a>]</p>
</div></div></div>Wed, 25 Feb 2015 22:14:37 +0000Caleb Newquist67771 at http://goingconcern.comhttp://goingconcern.com/post/supreme-court-unhooks-fisherman-conviction-under-sox-anti-shredding-provision#commentsMan Who Lived Out Fantasy of Screwing Over a Major Airline Sentenced to Six Years in Prisonhttp://goingconcern.com/post/man-who-lived-out-fantasy-screwing-over-major-airline-sentenced-six-years-prison
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/conflicted.jpg" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>Paul Anderson, a former Delta Airlines employee, defrauded Northwest and Delta Airlines out of $36 million. In a just world, we would proclaim him a hero who sees the injustice of horrendous business practices and does right by all of us who have been fucked over by an airline.</p>
<p>Alas, we live in nation of <a href="http://www.fbi.gov/atlanta/press-releases/2015/former-delta-air-lines-employee-sentenced-to-six-years-for-his-role-in-defrauding-delta-and-northwest-air-lines-of-more-than-36-million" target="_blank">laws that are designed to protect those</a> who need protecting -- corporations -- and Mr. Anderson's efforts were not appreciated by Northwest/Delta or law enforcement:</p>
<blockquote><div>Paul Anderson has been sentenced to six years and eight months in prison for his role in a scheme to defraud Northwest and Delta Air Lines of more than $36 million. Anderson and his co-defendant Michael Yedor submitted false invoices to both airlines, for work that was not performed but was billed for by a company allegedly owned by Yedor.</div>
<div> </div>
<div>“The defendant’s lucrative and long-running scheme came crashing down when Delta uncovered his deception and informed law enforcement,” said Acting U.S. Attorney John Horn. “For more than a decade, Anderson used his position of trust within these airline companies to steal millions of dollars from the airlines for himself and a codefendant.”</div>
</blockquote>
<div>Mr. Anderson -- read it in the voice of Agent Smith -- "had the authority to approve [the invoices] for payment" and then received a portion of the proceeds from Mr. Yedor. They pulled this off from 1999 to 2013; an impressive feat given the simplicity of the scam.</div>
<div> </div>
<div>I'm can't help but feel immense conflict about this. Stealing is bad. But airlines are the worst. </p>
<p><span style="font-size: 13.0080003738403px; line-height: 1.538em;">[</span><a href="http://www.fbi.gov/atlanta/press-releases/2015/former-delta-air-lines-employee-sentenced-to-six-years-for-his-role-in-defrauding-delta-and-northwest-air-lines-of-more-than-36-million" style="font-size: 13.0080003738403px; line-height: 1.538em;" target="_blank">FBI</a>] </div>
</div></div></div>Wed, 25 Feb 2015 19:50:25 +0000Caleb Newquist67770 at http://goingconcern.comhttp://goingconcern.com/post/man-who-lived-out-fantasy-screwing-over-major-airline-sentenced-six-years-prison#commentsBusy Season Zen: Classical Car Crushinghttp://goingconcern.com/post/busy-season-zen-classical-car-crushing
<div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even"><img src="http://goingconcern.com/sites/default/files/post/Screenshot%20%2857%29_1.png" width="230" height="150" alt="" /></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even"><p>A couple of years ago, Car and Driver ran a <a href="https://www.youtube.com/channel/UCOqhTsqySBCBTy571GArcXg" target="_blank">5-episode series on its YouTube channel</a> called The Destruction Hour. As you might expect, it's just 60 minutes of cars being crushed at a junkyard. They do manage to get through quite a number of cars in one hour, however.</p>
<p>It's a little tedious to watch it at normal speed so <a href="http://youtu.be/cTDrVn4jjM0?t=49m18s" target="_blank">jump to 49:18</a> for the sped-up version set to some nice violin music. If you prefer the real speed with sounds of shattering glass, whining machinery, back-up beeping and whatnot, just start at the beginning. Have a great rest of this final Wednesday in February. </p>
<p><iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed//cTDrVn4jjM0?t=49m18s" width="560"></iframe></p>
</div></div></div>Wed, 25 Feb 2015 18:22:06 +0000Caleb Newquist67769 at http://goingconcern.comhttp://goingconcern.com/post/busy-season-zen-classical-car-crushing#comments